White Paper: Introduction to cloud computing
The boom in cloud computing over the past few years has ledto a situation that is common to many innovations and newtechno...
What is ‘cloud computing’?Many people are confused as to exactly what cloud computing is, especially as the term can be us...
Types of Cloud ComputingPublic CloudPublic cloud (also referred to as ‘external’ cloud) describes the conventional meaning...
What services can be used in the cloud?There are numerous services that can be delivered through cloud computing, taking a...
Why switch from traditional IT to the cloud?There are many reasons why organisations of all sizes and types are adopting t...
Helps smaller businesses competeHistorically, there has been a huge disparity between the IT resources available to small ...
Should I be concerned about security?Many companies that are considering adopting cloud computing raise concerns over the ...
Moving to a cloud computing model can help your organisation to survive in a tough economic climate,equipping you with the...
White Paper   Introduction To Cloud Computing   Think Grid
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White Paper Introduction To Cloud Computing Think Grid

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How can you save money by moving to the cloud?

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White Paper Introduction To Cloud Computing Think Grid

  1. 1. White Paper: Introduction to cloud computing
  2. 2. The boom in cloud computing over the past few years has ledto a situation that is common to many innovations and newtechnologies: many have heard of it, but far fewer actuallyunderstand what it is and, more importantly, how it canbenefit them. This whitepaper will attempt to clarify theseissues by offering a comprehensive definition of cloudcomputing, and the business benefits it can bring.In an attempt to gain a competitive edge, businesses are increasingly looking for new and innovative ways tocut costs while maximising value – especially now, during a global economic downturn. They recognise thatthey need to grow, but are simultaneously under pressure to save money. This has forced the realisation thatnew ideas and methods may produce better results than the tried and tested formulas of yesteryear. It is thegrowing acceptance of innovative technologies that has seen cloud computing become the biggest buzzwordin IT.However, before an organisation decides to make the jump to the cloud, it is important to understand what,why, how and from whom. Not all cloud computing providers are the same. The range and quality of serviceson offer varies tremendously, so we recommend that you investigate the market thoroughly, with a clearlydefined set of requirements in mind.Rob Lovell, CEOThinkGrid
  3. 3. What is ‘cloud computing’?Many people are confused as to exactly what cloud computing is, especially as the term can be used to meanalmost anything. Roughly, it describes highly scalable computing resources provided as an external service viathe internet on a pay-as-you-go basis. The cloud is simply a metaphor for the internet, based on the symbolused to represent the worldwide network in computer network diagrams.Economically, the main appeal of cloud computing is that customers only use what they need, and only pay forwhat they actually use. Resources are available to be accessed from the cloud at any time, and from anylocation via the internet. There’s no need to worry about how things are being maintained behind the scenes –you simply purchase the IT service you require as you would any other utility. Because of this, cloud computinghas also been called utility computing, or ‘IT on demand’.This new, web-based generation of computing utilises remote servers housed in highly secure data centres fordata storage and management, so organisations no longer need to purchase and look after their IT solutionsin-house.What does it comprise?Cloud computing can be visualised as a pyramid consisting ofthree sections: Cloud ApplicationCloud ApplicationThis is the apex of the cloud pyramid, where applications are Cloud Platformrun and interacted with via a web browser, hosted desktopor remote client. A hallmark of commercial cloud computingapplications is that users never need to purchase expensivesoftware licenses themselves. Instead, the cost is Cloud Infrastructureincorporated into the subscription fee. A cloud applicationeliminates the need to install and run the application on thecustomers own computer, thus removing the burden of software maintenance, ongoing operation andsupport.Cloud PlatformThe middle layer of the cloud pyramid, which provides a computing platform or framework as a service. Acloud computing platform dynamically provisions, configures, reconfigures and de-provisions servers asneeded to cope with increases or decreases in demand. This in reality is a distributed computing model,where many services pull together to deliver an application or infrastructure request.Cloud InfrastructureThe foundation of the cloud pyramid is the delivery of IT infrastructure through virtualisation. Virtualisationallows the splitting of a single physical piece of hardware into independent, self governed environments, whichcan be scaled in terms of CPU, RAM, Disk and other elements. The infrastructure includes servers, networksand other hardware appliances delivered as either Infrastructure “Web Services”, “farms” or "cloud centres".These are then interlinked with others for resilience and additional capacity.
  4. 4. Types of Cloud ComputingPublic CloudPublic cloud (also referred to as ‘external’ cloud) describes the conventional meaning of cloud computing:scalable, dynamically provisioned, often virtualised resources available over the Internet from an off-site third-party provider, which divides up resources and bills its customers on a ‘utility’ basis.An example is ThinkGrid, a company that provides a multi-tenant architecture for supplying services such asHosted Desktops, Software as a Service and Platform as a Service. Other popular cloud vendors includeSalesforce.com, Amazon EC2 and Flexiscale.Private CloudPrivate cloud (also referred to as ‘corporate’ or ‘internal’ cloud) is a term used to denote a proprietarycomputing architecture providing hosted services on private networks. This type of cloud computing isgenerally used by large companies, and allows their corporate network and data centre administrators toeffectively become in-house ‘service providers’ catering to ‘customers’ within the corporation. However, itnegates many of the benefits of cloud computing, as organisations still need to purchase, set up and managetheir own clouds.Hybrid CloudIt has been suggested that a hybrid cloud environment combining resources from both internal and externalproviders will become the most popular choice for enterprises. For example, a company could choose to use apublic cloud service for general computing, but store its business-critical data within its own data centre. Thismay be because larger organisations are likely to have already invested heavily in the infrastructure requiredto provide resources in-house – or they may be concerned about the security of public clouds (see page 9 formore on this subject).
  5. 5. What services can be used in the cloud?There are numerous services that can be delivered through cloud computing, taking advantage of thedistributed cloud model. Here are some brief descriptions of a few of the most popular cloud-based ITsolutions:Hosted DesktopsHosted desktops remove the need for traditional desktop PCs in the office environment, and reduce the costof providing the services that you need. A hosted desktop looks and behaves like a regular desktop PC, but thesoftware and data customers use are housed in remote, highly secure data centres, rather than on their ownmachines. Users can simply access their hosted desktops via an internet connection from anywhere in theworld, using either an existing PC or laptop or, for maximum cost efficiency, a specialised device called a thinclient.Hosted EmailAs more organisations look for a secure, reliable email solution that will not cost the earth, they areincreasingly turning to hosted Microsoft Exchange® email plans. Using the world’s premier email platform, thisservice lets organisations both large and small reap the benefits of using MS Exchange® accounts withouthaving to invest in the costly infrastructure themselves. Email is stored centrally on managed servers,providing redundancy and fast connectivity from any location. This allows users to access their email, calendar,contacts and shared files by a variety of means, including Outlook®, Outlook Mobile Access (OMA) and OutlookWeb Access (OWA).Hosted Telephony (VOIP)VOIP (Voice Over IP) is a means of carrying phone calls and services across digital internet networks. In termsof basic usage and functionality, VOIP is no different to traditional telephony, and a VOIP-enabled telephoneworks exactly like a normal one, but it has distinct cost advantages. A hosted VOIP system replaces expensivephone systems, installation, handsets, BT lines and numbers with a simple, cost-efficient alternative that isavailable to use on a monthly subscription basis. Typically, a pre-configured handset just needs to be pluggedinto your broadband or office network to allow you to access features such as voicemail, IVR and more.Cloud StorageCloud storage is growing in popularity due to the benefits it provides, such as simple, CapEx-free costs,anywhere access and the removal of the burden of in-house maintenance and management. It is basically thedelivery of data storage as a service, from a third party provider, with access via the internet and billingcalculated on capacity used in a certain period (e.g. per month).Dynamic ServersDynamic servers are the next generation of server environment, replacing the conventional concept of thededicated server. A provider like ThinkGrid gives its customers access to resources that look and feel exactlylike a dedicated server, but that are fully scalable. You can directly control the amount of processing powerand space you use, meaning you dont have to pay for hardware you dont need. Typically, you can makechanges to your dynamic server at any time, on the fly, without the costs associated with moving from oneserver to another.
  6. 6. Why switch from traditional IT to the cloud?There are many reasons why organisations of all sizes and types are adopting this model of IT. It provides away to increase capacity or add capabilities on the fly without investing in new infrastructure, training newpersonnel, or licensing new software. Ultimately, it can save companies a considerable amount of money...Removal / reduction of capital expenditureCustomers can avoid spending large amounts of capital on purchasing and installing their IT infrastructure orapplications by moving to the cloud model. Capital expenditure on IT reduces available working capital forother critical operations and business investments. Cloud computing offers a simple operational expense thatis easier to budget for month-by-month, and prevents money being wasted on depreciating assets.Additionally, customers do not need to pay for excess resource capacity in-house to meet fluctuating demand.Reduced administration costsIT solutions can be deployed extremely quickly and managed, maintained, patched and upgraded remotely byyour service provider. Technical support is provided round the clock by reputable providers like ThinkGrid forno extra charge, reducing the burden on IT staff. This means that they are free to focus on business-criticaltasks, and businesses can avoid incurring additional manpower and training costs. IT giant IBM has pointed outthat cloud computing allows organisations to streamline procurement processes, and eliminates the need toduplicate certain computer administrative skills related to setup, configuration, and support.Improved resource utilisationCombining resources into large clouds reduces costs and maximises utilisation by delivering resources onlywhen they are needed. Businesses needn’t worry about over-provisioning for a service whose use does notmeet their predictions, or under-provisioning for one that becomes unexpectedly popular. Moving more andmore applications, infrastructure, and even support into the cloud can free up precious time, effort andbudgets to concentrate on the real job of exploiting technology to improve the mission of the company. Itreally comes down to making better use of your time – focusing on your business and allowing cloud providersto manage the resources to get you to where you need to go. Sharing computing power among multipletenants can improve utilisation rates, as servers are not left idle, which can reduce costs significantly whileincreasing the speed of application development. A side effect of this approach is that computer capacity risesdramatically, as customers do not have to engineer for peak loads.Economies of scaleCloud computing customers can benefit from the economies of scale enjoyed by providers, who typically usevery large-scale data centres operating at much higher efficiency levels, and multi-tenant architecture to shareresources between many different customers. This model of IT provision allows them to pass on savings totheir customers.Scalability on demandScalability and flexibility are highly valuable advantages offered by cloud computing, allowing customers toreact quickly to changing IT needs, adding or subtracting capacity and users as and when required andresponding to real rather than projected requirements. Even better, because cloud-computing follows a utilitymodel in which service costs are based on actual consumption, you only pay for what you use. Customersbenefit from greater elasticity of resources, without paying a premium for large scale.Quick and easy implementationWithout the need to purchase hardware, software licences or implementation services, a company can get itscloud-computing arrangement off the ground in minutes.
  7. 7. Helps smaller businesses competeHistorically, there has been a huge disparity between the IT resources available to small businesses and toenterprises. Cloud computing has made it possible for smaller companies to compete on an even playing fieldwith much bigger competitors. ‘Renting’ IT services instead of investing in hardware and software makes themmuch more affordable, and means that capital can instead be used for other vital projects. Providers likeThinkGrid take enterprise technology and offer SMBs services that would otherwise cost hundreds ofthousands of pounds for a low monthly fee.Quality of serviceYour selected vendor should offer 24/7 customer support and an immediate response to emergencysituations.Guaranteed uptime, SLAs.Always ask a prospective provider about reliability and guaranteed service levels – ensure your applicationsand/or services are always online and accessible.Anywhere AccessCloud-based IT services let you access your applications and data securely from any location via an internetconnection. It’s easier to collaborate too; with both the application and the data stored in the cloud, multipleusers can work together on the same project, share calendars and contacts etc. It has been pointed out that ifyour internet connection fails, you will not be able to access your data. However, due to the ‘anywhere access’nature of the cloud, users can simply connect from a different location – so if your office connection fails andyou have no redundancy, you can access your data from home or the nearest Wi-Fi enabled point. Because ofthis, flexible / remote working is easily enabled, allowing you to cut overheads, meet new working regulationsand keep your staff happy!Technical SupportA good cloud computing provider will offer round the clock technical support. ThinkGrid customers, forinstance, are assigned one of our support pods, and all subsequent contact is then handled by the same smallgroup of skilled engineers, who are available 24/7. This type of support model allows a provider to build abetter understanding of your business requirements, effectively becoming an extension of your team.Disaster recovery / backupRecent research has indicated that around 90% of businesses do not have adequate disaster recovery orbusiness continuity plans, leaving them vulnerable to any disruptions that might occur. Providers like ThinkGridcan provide an array of disaster recovery services, from cloud backup (allowing you to store important filesfrom your desktop or office network within their data centres) to having ready-to-go desktops and services incase your business is hit by problems. Hosted Desktops (or Hosted VDI) from ThinkGrid, for example, mean youdon’t have to worry about worry about data backup or disaster recovery, as this is taken care of as part of theservice. Files are stored twice at different remote locations to ensure that theres always a copy available 24hours a day, 7 days per week.
  8. 8. Should I be concerned about security?Many companies that are considering adopting cloud computing raise concerns over the security of data beingstored and accessed via the internet. What a lot of people don’t realise is that good vendors adhere to strictprivacy policies and sophisticated security measures, with data encryption being one example of this.Companies can choose to encrypt data before even storing it on a third-party provider’s servers. As a result,many cloud-computing vendors offer greater data security and confidentiality than companies that choose tostore their data in-house. However, not all vendors will offer the same level of security. It is recommendedthat anyone with concerns over security and access should research vendors policies before using theirservices. Technology analyst and consulting firm Gartner lists seven security issues to bear in mind whenconsidering a particular vendor’s services: 1. Privileged user access—enquire about who has access to data and about the hiring and management of such administrators 2. Regulatory compliance—make sure a vendor is willing to undergo external audits and/or security certifications 3. Data location—ask if a provider allows for any control over the location of data 4. Data segregation—make sure that encryption is available at all stages and that these "encryption schemes were designed and tested by experienced professionals" 5. Recovery—find out what will happen to data in the case of a disaster; do they offer complete restoration and, if so, how long that would take 6. Investigative Support—inquire whether a vendor has the ability to investigate any inappropriate or illegal activity 7. Long-term viability—ask what will happen to data if the company goes out of business; how will data be returned and in what formatGenerally speaking, however, security is usually improved by keeping data in one centralised location. In highsecurity data centres like those used by ThinkGrid, security is typically as good as or better than traditionalsystems, in part because providers are able to devote resources to solving security issues that many customerscannot afford.What about integration?In order to make the most of your existing IT provision, the cloud computing services you decide to subscribeto should be able to integrate easily with your current infrastructure. Key to ThinkGrids enterprise offerings isbeing able to easily integrate with customers existing networks, so that our services become a seamlessextension of those already provided by in-house IT departments. Cloud computing infrastructure should allowenterprises to achieve more efficient use of their existing IT hardware and software investments.ThinkGrid works with many channel partners to provide an end-to-end solution to small businesses, so if acompany wishes to evaluate, plan migrations and move towards cloud computing, this can be done quicklyand simply, hand in hand.ConclusionWhen your business grows, your IT needs grow too. The scalability and speed of deployment offered by cloudcomputing means you can expand your IT provision instantly to meet increased requirements, and you canalso scale it down again whenever you want. Security is typically greatly enhanced, along with resilience, andthe flexibility and responsiveness of cloud-based IT services mean that you can react quickly to a changingbusiness environment. Waste (of both time and resources) is reduced, allowing you to effectively do morewith less. This provides you a leaner, more efficient IT model, available on demand.
  9. 9. Moving to a cloud computing model can help your organisation to survive in a tough economic climate,equipping you with the latest business tools and giving you access to advanced technologies at a fraction ofthe cost of purchasing and running the same systems in-house. Check that your provider can deliver the type/sand quality of service you require, and before you know it you’ll be able to enjoy the advantages of cloudcomputing.About ThinkGridThinkGrid provides business IT on demand. Launched in 2008 with the aim of disrupting the way thatbusinesses currently purchase, use and manage IT, ThinkGrid provides enterprise class IT to small and mediumbusinesses. ThinkGrid removes the management and cost burden of owning IT by offering it to customers asan on demand service. Its current services include Hosted desktop, Exchange, VoIP, Hosted BlackberryEnterprise Service and Dynamic Server Infrastructure. With ThinkGrid, each employee is given their ownpersonalised hosted virtual desktop that can be accessed from anywhere in the world through an Internetconnection. ThinkGrid customers only pay for what they use, based on the needs of the business and can scaleup and down at the click of a mouse. For more information visit http://www.thinkgrid.co.uk/.

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